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    Accounting Assignment 1 - ST10244622

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    Sizwe Mahlobo
    Accounting 1A - ACBP5121. ASSIGNMENT 1 student submission.

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    Accounting Assignment 1 - ST10244622

    Uploaded by

    Sizwe Mahlobo
    4 views7 pages
    Accounting 1A - ACBP5121. ASSIGNMENT 1 student submission.

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    ACCOUNTING ASSIGNMENT 1 -ST10244622

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    Accounting 1A - ACBP5121. ASSIGNMENT 1 student submission.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    4 views7 pages

    Accounting Assignment 1 - ST10244622

    Uploaded by

    Sizwe Mahlobo
    Accounting 1A - ACBP5121. ASSIGNMENT 1 student submission.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    ASSIGNMENT 1

    MODULE: ACCOUNTING 1A – ACBP5121/d/w


    STUDENT NO. : ST10244622

    Question 1
    Q.1.1
    Aspect Sole Trader Partnership Profit
    Company
    Legal No separate No separate Separate legal
    personality legal legal personality.
    personality. personality.
    Start-up Starting requires Simple and Starting is a
    procedures choosing a legal cheap starting process with
    name and proceedure. registration
    acquiring a fees payable.
    licence if
    necessary.
    Ownership Ownership is Partners. Shareholders
    maximum of 1
    person/ founder
    Distribution of All profits made Profits shared Profit is
    profit by business proportionally divided among
    belongs solely to between shareholders/
    the owner. partners. divident.
    Income tax Paid by owner. Paid by Paid by
    partners each. business.

    Q.1.2
    Users Benefit
    Investor – Mr To determine determine the risk and return of
    Khumalo investment as well as business ability to pay
    dividend.
    Lender – SABSA To determine if business will pay back loan and
    Bank interest on time
    Customer – Miss To find out on the business’s continuation.
    SA contestants
    Question 2
    Asset Equity Liability Expense Income
    Vehicle Capital Mortgage loan Cost of sales Interest on
    deposit

    Land and Drawings Creditors Interest on Rent income


    building mortgage loan
    Petty Cash Bank Sales
    overdraft
    Fixed deposit
    Debtors
    Q.2.1
    Q2.2
    Total non-current Amount Total current Amount
    assets assets
    Vehicle 200 000 Petty cash 2 500

    Land and building 1 000 000 Debtors 60 000

    Fixed deposit 50 000

    1 250 000 62 500

    Total non-current Amount Total current Amount


    liabilities liabilities
    Mortgage loan 120 000 Creditors 35 000

    Bank overdraft 20 000

    120 000 55 000

    OE = A – L
    OE = R 1 312 500 – R 175 000
    OE = R1 137 500

    Q.2.3.1) From Argon Traders perspective, Ametis Traders is the debtor and
    Granaat Trader is the creditor.
    Q.2.3.2) Debt is money that is owed by a debtor to a creditor; debtor is
    someone that owes money to a creditor.

    Question 3
    Q.3.1
    VAT Exclusive Amount VAT Amount VAT Inclusive Amount
    R46 000 R6 900 R52 900
    R108 000 R16 200 R124 200
    R148 000 R22 200 R170 200
    Q.3.2
    Consideration Standard Zero-rated Exempt Non
    Rated Allowable
    Petrol X
    Life assurance X
    White bread for staff X
    lunches
    A kettle for the office X
    kitchen

    Q.3.3
    Column A Column B
    1. D
    2. A
    3. E
    4. B
    5. C

    Q.3.4) The two bases are: payments bases and invoice bases. A sole trader
    with a R2 million turnover is a payments bases as payments bases are only
    applicable to sole traders with a turnover not exceeding R2.5 million.

    Q.3.5
    Inputs Outputs
    Transactio Amount VAT Transactio Amount VAT
    n Amount n Amount
    Purchases R86 250 R11 250 Sales R115 000 R15 000
    Telephone R1 150 R150 Purchase R3 450 R450
    returns
    Advertising R920 R120
    Sales R6 900 R900
    returns
    Total R95 220 R12 420 R118 450 R15 450
    VAT payable = Output VAT – Input VAT
    VAT payable = R15 450 – R12 420
    VAT payable = R3 030

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